Decentralized Governance and Women's Financial Inclusion in Rural India:
The Role of Panchayati Raj Institutions in Economic Empowerment

Renu Kumari Burnwal; Dr. Kanhaiya Prasad Roy

doi:10.46609/IJSSER.2025.v10i12.047

Title: Decentralized Governance and Women's Financial Inclusion in Rural India: The Role of Panchayati Raj Institutions in Economic Empowerment
Authors: Renu Kumari Burnwal and Dr. Kanhaiya Prasad Roy
Journal: International Journal of Social Science and Economic Research (IJSSER) ISSN: 2455-8834 Volume: 10 Issue: 12 Publication Date: December 2025 DOI: 10.46609/IJSSER.2025.v10i12.047
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Renu Kumari Burnwal1 and Dr. Kanhaiya Prasad Roy2 1. Research Scholar, University Dept. of Economics, VBU Hazaribag 2. Assistant Professor, Adarsh College, VBU Hazaribag
MLA 8 Burnwal, Renu Kumari, and Dr. Kanhaiya Prasad Roy. "Decentralized Governance and Women's Financial Inclusion in Rural India: The Role of Panchayati Raj Institutions in Economic Empowerment." Int. j. of Social Science and Economic Research, vol. 10, no. 12, Dec. 2025, pp. 6907-6924, doi.org/10.46609/IJSSER.2025.v10i12.047. Accessed Dec. 2025. APA 6 Burnwal, R., & Roy, D. (2025, December). Decentralized Governance and Women's Financial Inclusion in Rural India: The Role of Panchayati Raj Institutions in Economic Empowerment. Int. j. of Social Science and Economic Research, 10(12), 6907-6924. Retrieved from https://doi.org/10.46609/IJSSER.2025.v10i12.047 Chicago Burnwal, Renu Kumari, and Dr. Kanhaiya Prasad Roy. "Decentralized Governance and Women's Financial Inclusion in Rural India: The Role of Panchayati Raj Institutions in Economic Empowerment." Int. j. of Social Science and Economic Research 10, no. 12 (December 2025), 6907-6924. Accessed December, 2025. https://doi.org/10.46609/IJSSER.2025.v10i12.047.
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ABSTRACT: Financial inclusion has proved to be very useful in alleviating poverty, bringing about gender equality, and improving rural livelihoods. In India, Panchayati Raj Institutions (PRIs) have emerged as important local governance institutions that link rural women with financial services. This paper investigates the effect of decentralized governance using PRIs on women's financial inclusion and empowerment. Data for this research comes from secondary sources such as government documents, policies, and international databases, including Ministry of Panchayati Raj, NABARD, World Bank Global Findex Database, MoSPI, and Government of Jharkhand. The study investigates how decentralized governance using PRIs helps strengthen Self-Help Groups (SHGs), develop networks of Business Correspondents (Bank Sakhi), improve financial literacy, and implement welfare programs by means of Direct Benefit Transfer. It has been found that even though women now possess bank accounts equal to those of men, there are gender differences in digital banking, formal credit, mobile money, and possession of productive assets. The study shows that decentralized governance contributes to financial inclusion when PRIs cooperate with SHGs, banks, and livelihood missions. The comparative study of Kerala, Bihar, Odisha, and Jharkhand reveals the impact of various institutional arrangements on access to finance and employment of women. The findings indicate that the strengthening of the Panchayati Raj Institutions, greater financial literacy using digital technology, better property rights for women, and coordination among institutions could be very effective in empowering women economically. This paper makes a contribution to the existing literature through the understanding of the role of decentralized governance as an institutional link.

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